(extract from the ATO 16 January 2019)

Paying superannuation to your employees is an important part of being an employer.

We are here to assist in meeting your obligations but the ATO are keeping a better track of who is and who is not paying employee super.

Did you know that if you miss a payment, super guarantee charge (SGC) may apply, and you will need to lodge an SGC statement the following month. SGC is also non-deductible, which means you lose the deduction in your business.

Even if you pay SG at a later date, SGC may still apply. If you think you may be at risk of getting behind with SG payments, contact us as soon as possible so we can work with you to get you back on track.

Some simple steps to paying the correct amount and pay on time as it is an important part of being an employer.

Super provides income for your workers in retirement so here’s how to run a quick check of your super obligations to make sure you’ve got everything sorted.

• Check you’re paying super to all eligible workers.
  • Some contractors may be entitled to super.

• Check you’re paying the right amount.
  • Currently you need to pay a minimum of 9.5% of their ordinary time earnings.

• Check you’re paying on time.
  • It’s tax deductible against your business income.
  • At a minimum, pay super quarterly by the 28^th day after the end of the quarter….

30 September, 31 December, 31 March and 30 June

• • If you don’t pay on time, you need to pay a superannuation guarantee charge, which is not tax deductible.

• Check you’re paying to the right place.
  • Pay super into your worker’s fund of choice.
  • If they haven’t given you the details, pay it into your default fund.

• Check you’re paying the right way.
  • Pay the SuperStream way – where both payments and data are sent electronically in a standard format.
  • You may be able to use the free Small Business Super Clearing House to distribute payments to your employees’ super funds.
  • Single Touch Payroll is the next step in streamlining your payroll reporting.

• Check you’re keeping accurate records.
  • Keep evidence to show you’ve met your obligations.

Employing people involves lots of obligations, including superannuation. We have the tools and calculators to help you get it right.

The post ATO Superannuation Compliance appeared first on All Accounting Matters.

May 2017

The 2017 Federal Budget, handed down by Treasurer Scott Morrison on Tuesday night, 9^th May at 7:30pm AEST includes proposed changes which will affect residential property investors Australia-wide.

The Australian Tax Office (ATO) allows owners of income producing property to claim depreciation deductions for the wear and tear that occurs to a building’s structure and the plant and equipment assets within.

The proposed changes relate to the depreciation of plant and equipment assets and the eligibility to claim this deduction. Currently, investors are eligible to claim qualifying plant and equipment depreciation on assets found in an investment property they purchase, even if they were installed by a previous owner.

“Under the new rules which are yet to be legislated by Parliament, investors will be able to depreciate new plant and equipment assets and items they add to their property, however subsequent owners will not be able to claim depreciation on existing plant and equipment assets,” said the Chief Executive Officer of BMT Tax Depreciation, Bradley Beer.

“This change will have a major impact on investors, essentially reducing the annual deductions they can claim therefore reducing their cash return each year. This could lead to investors being in a tighter financial position and may discourage future investors from purchasing a second hand residential property,” said Mr Beer.

“It is our understanding at this stage that if the property is new, they will be able to continue to depreciate plant and equipment as they were previously. We are seeking further clarification on this,” said Mr Beer.

Investors will still be able to claim capital works deductions also known as building write off, including any additional capital works carried out by a previous owner.

The budget notes were clear that existing investments will be grandfathered. This means that anyone who has purchased a property up until the 9^th of May 2017 will be able to claim depreciation as per normal.

If a property investor exchanges contracts to purchase a second-hand property after 7:30pm on the 9th May, there could be different depreciation rules applicable to their scenario.

“We are currently speaking with government to further understand the intricacies relating to the budget notes and the proposed changes to depreciation of plant and equipment assets,” said Mr Beer.

Article Provided by Mr Bradley Beer
CEO, BMT Tax Depreciation

Phone: 0413 271 777
Website www.bmtqs.com.au

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